The director of a firm which traded in fizzy drinks, car parts and accident data has been banned for nine years, for failing to ensure the company kept adequate accounting*records.
Javid Morgra, aged 32 of Bolton, Lancashire, admitted that he had failed to keep sufficient company records and gave an undertaking to the Secretary of State for Business, Energy and Industrial Strategy not to be a director of a limited company, for 9 years, from 7 August.
Mr Mogra was the sole director of Middleborough Ltd (Middleborough) which was wound up by the Court in the public interest on 14 November 2016.
The company owed creditors at least ?2,119,589 despite filing accounts showing turnover of ?2,321,657 for the period ended 31 August 2015.
In giving his undertaking, Mr Mogra did not dispute that he failed to ensure Middleborough Ltd kept adequate accounting records, and that as a consequence, it has not been possible to:
verify his explanation for the shortfall of ?54,229 paid to Middleborough by a customer in respect of beverages supplied between 29 June 2015 and 27 August 2015
verify his explanation for an underpayment of ?1,435,954 to the supplier, a shortfall of ?1,235,302 received from the customer and an overall loss of ?348,390 incurred on sales of car parts between 02 January 2015 and 16 September 2015
verify his explanation regarding the sale of 6,136 sets of accident data and a debt due to a supplier of at least ?624,929 incurred between 01 July 2015 and 16 September 2015
determine the accuracy of financial statements filed at Companies House for the periods ending 28 February 2014, 10 February 2015 and 31 August 2015
determine the accuracy of Middleborough?s VAT returns submitted to HMRC in relation to the 03/2015 to the 03/2016 VAT periods
determine the nature and extent of Middleborough?s assets and liabilities
verify the legitimacy of Middleborough?s trading or show that all transactions have been carried out in the usual course of business and to the benefit of the company
Commenting on the disqualification, Ken Beasley, Official Receiver of the Insolvency Service?s Public Interest Unit, said:
The Insolvency Service will not tolerate Directors who cannot show that their Companies are being run for legitimate purposes.
The director of this company has fallen far short of the standard of record keeping that can be reasonably expected and as a result, there were serious concerns over the true nature of this business.